BUYING A CONDO IN THE GTA
When buying a new condo in the GTA, there are generally two important questions people ask: What can I afford and 2) Which area should I buy in? Before answering either of these questions, it makes sense to first ask: how is the price of any given property calculated? Typically, it’s a fairly straightforward two-factor analysis involving location and the type of property.
Whether it is in the busy streets of the downtown core, a definite neighbourhood within the GTA, or the suburbs, location is one of the most important price factors. Fortunately, the GTA is large and diverse, and there is almost always a location to suit your needs. If you are in search of a new home, it’s important to consider what location will fit your needs now, and in years to come.
PROPERTY TYPE AND PRICING
Generally speaking, the bigger the unit – factoring in location – the higher the price. Taking that into consideration, a unit in the downtown core would cost considerably more than a similar unit in Mississauga. One thing you must factor in is: are you buying it in the pre construction stages or is it already on the market? More often than not, a pre-construction condo costs less than something that is already built (because it’s intangible and there is an ‘uncertainty’ cost implicit in an unbuilt condo).
For investors, pre construction is usually the way to go. You buy it at a lower cost, typically in a brand new development, and tend to enjoy an easier payment structure. However, not everyone is looking to wait for construction to finish. Whatever your end goal, whether pure investment, a place to live, or something in between, here at Condo Finder we specialize in both aspects.
Purchasing real estate is one of the most significant investments the majority of people will ever make. There are a range of costs associated with condo ownership, and people often worry about how much of their monthly income should go towards servicing their mortgage. That number is quite constant across the board: no more than 30-32% of your gross annual income should go towards mortgage expenses. In addition, other fees to consider when purchasing a condo include:
- Condo fees
- Property tax
ARRANGING A MORTGAGE
Which brings us to securing financing. Securing a mortgage can be stressful, but it is vital, which is why we recommend securing a pre-approved mortgage before even beginning your condo search. This way you know what you can afford and you give your realtor concrete limitations within which to search, use your time wisely, and only evaluate properties you know meet your criteria.
Once you have gone through the above processes, it is time to start looking for the perfect home. Take your time, know your options, be assertive about what you want, and find the space that’s right for you. Contact Condo Finder today and let us help get you started on the path to condo ownership.
BUY WITH CONDO FINDER TODAY
Condos for Sale in the GTA
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